FIGHT­ING AGAINST THE FLOOD

Finweek English Edition - - INVESTMENT -

There was a re­cent f lood of bad news for hold­ers of em­bat­tled small caps, with SacOil fi­nally giv­ing an up­date as to what’s hap­pen­ing – and it’s not good. It plans to once again try and con­vert the Gair­loch loan into 883m shares, this deal got scup­pered by share­hold­ers the last time it was voted on, and re­sulted in the ma­jor­ity of the board quit­ting and the share be­ing sus­pended. SacOil then planned a rights is­sue of an­other 2.1bn shares at 27c per new share. It cur­rently has 953m shares in is­sue, and th­ese two deals will raise the num­ber to al­most 4bn leav­ing cur­rent share­hold-

26 ers di­luted by a fac­tor of 4! It’s like ask­ing tur­keys to vote for Christ­mas; al­though, in this case, it seems that if share­hold­ers say no then there is no more SacOil.

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